Seplat Energy Set to Double Oil Production After ExxonMobil Acquisition

Seplat Energy Plc, a dual-listed company on the Nigerian and London Stock Exchanges, has unveiled plans to double its crude oil production to approximately 120,000 barrels per day (bpd) following its landmark acquisition of onshore assets from ExxonMobil Corporation.

Strategic Growth Through Asset Expansion

This move represents a significant leap from the company’s current production capacity of 50,000 bpd. According to Seplat’s Chief Financial Officer, Eleanor Adaralegbe, the newly acquired assets, previously underutilized, hold immense potential for development and expansion.
“The assets have had very minimal investments until now. Once we step in, there will be an opportunity to grow significantly,” Adaralegbe shared in an interview with the Financial Times.

Acquisition Details and National Impact

In December 2024, Seplat finalized its acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil for $1.28 billion. This transaction positions Seplat as one of the largest domestic oil and gas operators in Nigeria, with an expansive portfolio that includes:

• 11 onshore oil blocks
• 48 oil and gas fields
• Three export terminals
• Five gas processing facilities

With this acquisition, Seplat now accounts for 16% of Nigeria’s total oil production capacity, a milestone underscored by CEO Roger Brown, who emphasized the company’s alignment with the Nigerian Federal Government’s production goals.

“Under President Bola Tinubu’s leadership, there’s a renewed focus on increasing oil production to support foreign exchange inflows and stabilize the naira. We’re fully aligned with these objectives,” Brown stated.

Collaboration with NNPC and Dormant Well Revitalization

As mandated by the Petroleum Industry Act (PIA), Seplat will manage these assets in partnership with the Nigerian National Petroleum Company Limited (NNPCL).

Chief Operating Officer Samson Ezugworie highlighted plans to reactivate dormant wells within the acquired fields.
“Of the 600 drilled wells, only 200 are currently producing. Reactivating these idle wells will unlock substantial production in a short timeframe,” Ezugworie said, emphasizing the untapped potential of the assets.

Addressing Concerns Over Onshore Asset Value

Responding to industry skepticism about the value of divested onshore assets, Ezugworie expressed confidence in the newly acquired fields.
“These assets present vast opportunities, with abundant untapped reserves offering significant room for growth,” he noted.

Regulatory Approvals and Workforce Integration

The acquisition, initially agreed upon in February 2022, faced regulatory delays but secured approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in October 2024. This paved the way for the deal’s completion by December.

Seplat has also pledged to integrate MPNU staff into its workforce, ensuring operational continuity and reinforcing its commitment to positive social impact.

Looking Ahead

With this transformative acquisition, Seplat Energy is poised to strengthen its leadership in Nigeria’s oil and gas sector. By doubling production capacity and revitalizing dormant assets, the company not only enhances its operational capabilities but also aligns with national goals to boost oil production and drive economic growth.